Online transaction platforms subject to VAT
Order issued for the implementation of Articles 283 bis and 293 A ter of the General Tax Code
The notified draft Order provides for the implementation of Articles 283 bis and 293 A ter of the General Tax Code (CGI), created by Article 11 of Law No 2018-898 of 23 October 2018 on the fight against fraud.
These Articles provide that operators of online platforms are jointly and severally liable for the payment of VAT due by taxable persons carrying out transactions through them. This joint and several liability for payment requires a warning and a formal notice from the administration asking the platform operator to take measures to permit the taxable person to regularise his or her situation. After the warning and the formal notice from the administration, the platform operator must provide notification of the measures thus implemented. If the measures requested by the administration are not implemented, the platform may be held jointly and severally liable for VAT payments.
The draft Order specifies the terms and content of the warning and the notice sent by the administration to the online platform operator and the notification that the latter must send to the administration. It also specifies the period within which the platform operator’s notification must be sent to the administration.